Updated: Mar 22, 2019
"Let’s not forget, if it weren’t for Bitcoin there would be no other cryptocurrencies."
- God aka Bitcoin
Bitcoin was the first cryptocurrency. Due to its open source code, all other cryptocurrencies were created by copying and modifying it. Bitcoin was the worlds first application of blockchain technology. Before you consider investing in a particular cryptocurrency be sure you know what you are buying. There are many reasons the Bitcoin network is the strongest and most secure. If other “altcoins” or “hard fork coins” claim to have more advanced features (such as lower transaction fees or faster transaction speeds), you must realize that the Bitcoin network can be upgraded to outperform them. Humanity has a much better chance of achieving the full value potential of cryptocurrency by focusing on less, not more of them.
You should know the answers to all of the following questions before buying any cryptocurrency:
• What blockchain is the coin from?
• How secure is the network?
• Is the network decentralized or centralized?
• Is it an altcoin?
• Is it a hard fork coin?
• Is it an ERC-20 token?
• Why was the coin created?
• Is the coin unique?
• Does the coin solve a global problem?
• Does it perform a task that Bitcoin cannot?
• What project or organization is behind the coin?
• What is the history and future potential of the coin?
If you cannot answer these questions in detail, you may want to rethink why you are buying the coin. Buying just because the price is going up can be risky. If a coin is cheap, it does not guarantee you'll have better gains than Bitcoin. Be careful getting caught up in the “penny stocks” of cryptocurrency. Many have the potential to be scams, compromised, or disappear. Remember, you don’t have to buy a full Bitcoin, and you haven’t missed the boat. You can buy a fraction of a Bitcoin for as little money as you want to spend.
Aside from Bitcoin, there are few coins and tokens with promising potential. Be sure and do your research. Education is the key to success.